Where Does the Fiscal Investment and Loan Program provide financing?

(1) Housing construction
The Fiscal Investment and Loan Program (FILP) has contributed greatly to promoting housing construction and improving housing quality through loans made by the Government Housing Loan Corporation. Housing financed by the Government Housing Loan Corporation accounts for 30% of all housing in Japan and 41% of owner-occupied housing.

(2) Small and medium-sized businesses
The National Life Finance Corporation and the Japan Finance Corporation for Small Business help small and medium-sized businesses that lack credit-worthiness or collateral to procure funds smoothly. At the same time, in order to help small and medium-sized businesses adapt to the changing business environment, these agencies also provide policy-based financing, supplementing financing from private financial institutions and contributing broadly to strengthening Japan's economic base and activity.

(3) Roads
The Japan Highway Public Corporation and other road-related FILP agencies promote the development of high-standard arterial expressways and strengthen the nationwide highway network that is the basis for multipolar land development. In addition, such bodies as the Metropolitan Expressway Public Corporation and the Hanshin Expressway Public Corporation develop the vital traffic infrastructure of major cities, and improve interchanges and widen roads so as to alleviate traffic congestion.

(4) Railways and subways
Entities such as the Japan Railway Construction Public Corporation and the Teito Rapid Transit Authority use FILP financing to promote construction of new rail lines, expansion of existing lines and construction of subways. They contribute substantially to upgrading the rail network and easing rail congestion in major urban areas.

Teito Rapid Transit Authority (Namboku Line)

(5) Airports
The New Tokyo International Airport Authority and other airport-related FILP agencies contribute to Japan's internationalization and to the development of outlying regions in a wide variety of ways, including the waterfront development projects at Tokyo International Airport (Haneda) and the enhancements to New Tokyo International Airport (Narita). In addition, the Kansai International Airport, which opened in September 1994, and the Chubu International Airport, which started construction in FY 1998, make use of FILP financing through government-guaranteed bonds issued by the Kansai International Airport Co., Ltd. and the Central Japan International Airport Co., Ltd.

Kansai International Airport (Osaka)

(6) Water and sewerage
Local governments are endeavoring to extend sewerage systems to more homes and businesses through the use of FILP financing. Such entities as the Water Resources Development Public Corporation play a major role in providing a steady water supply.

(7) Education, medical care and social welfare
The FILP contributes significantly to education, medical and welfare facilities through the Special Account for National Schools, the Special Account for National Hospitals, the Social Welfare and Medical Service Corporation, the Promotion and Mutual Aid Corporation for Private Schools of Japan, and local governments. Using FILP financing, the Japan Scholarship Foundation provides low-interest loans to further the education of talented people and to promote equality of educational opportunity.

Special care rest home (Tottori)

(8) Agriculture, forestry and fisheries
Declining food self-sufficiency rates, falling worker populations and aging demographics combine to produce marked changes in the business environments for agriculture, forestry and fisheries. Against that back-ground, the Agriculture, Forestry and Fisheries Finance Corporation provides the necessary loans to maintain production infrastructure and improve business structures in order to maintain and increase the productivity of agricultural industries and ensure a stable supply of food.

(9) Industry and technological development
The Development Bank of Japan responds to changing economic and social conditions by providing financial assistance to supplement private financial institutions in such areas as economic structural reform and research and development.

(10) Regional development
Local governments, the Japan Regional Development Corporation, the Development Bank of Japan and the Okinawa Development Finance Corporation, play major roles in developing local areas by improving the social infrastructure for peopleﾕs daily lives, especially social welfare facilities, and by constructing the public facilities that form the core of regional development.

Integrated agricultural land improvement project
in Miyakonojo area (Miyazaki)

(11) International cooperation
The Japan Bank for International Cooperation contributes to harmonious international economic relations and supports economic development in developing countries through expanding import and investment finance, untied loans, co-finance with the World Bank and other international financial institutions (international financial business), and yen loans to developing countries (overseas economic cooperation businesses).

Areas and projects targeted for FILP financing, as well as financing amounts, are constantly reviewed in order to respond appropriately to both the changing needs of the public and changes in social and economic conditions. The graph on page 25 highlights trends in the categories of projects financed by the FILP and clearly indicates the results of ongoing reviews of the areas and, projects targeted for FILP financing. The graph shows how fund allocation has changed over the years based on the following ideas:

Until 1960
The government focused on establishing a core industrial and economic base. FILP financing was provided for fundamental industrial and economic sectors to support industry, technology, national land preservation and reconstruction in the event of disaster.

1961-1970
The government focused on balanced economic development and improvement of the daily lives of the people. Priority was placed on small and medium-sized businesses, and improvements were made in roads and the living environment.

1971-1980
The government focused on upgrading public welfare and regulating the economy, placing priority on housing, the living environment and small and medium-sized businesses.

Since 1981
The government focused on active responses to economic issues. In light of economic and social trends and reviews of FILP financing, priority continued to be placed on housing, the living environment and small and medium-sized businesses.
Mirroring these changing ideas, project categories 1 through 6 (areas that directly help to improve people's lives) have steadily risen as a proportion of FILP financing. Recently they have accounted for some 75% of the general FILP plan.
By contrast, financing for category 11 (industry and technology) has receded sharply from roughly 16% of FILP financing in 1955 to about 1%. This indicates that the FILP plans have shifted priority from industry to daily life.
Furthermore, areas and projects targeted for FILP financing are constantly reviewed in an annual "scrap and build" process that seeks to respond appropriately to the changing needs of the public and changes in social and economic conditions, and to appropriately achieve policy goals.

		Areas and projects targeted by Fiscal Investment and Loan Program financing, as well as the financing amounts, are constantly reviewed in order to respond appropriately to both the changing needs of the public and changes in social and economic conditions.